Stock-based Compensation Expense (Tables)

6 Months Ended

Jul. 31, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of Share-based Compensation, Stock Options, Activity

A summary of stock option activity for the six months ended July 31, 2014 is as follows:

	Number of Shares		Weighted average exercise price per share		Weighted average remaining contractual term	Aggregate Intrinsic Value (3)
	(in millions)				(in years)	(in millions)
Options outstanding at January 31, 2014	5.9		$	33.54
Granted (1)	—		—
Exercised	(2.3	)	33.11
Canceled/Forfeited	—		—
Options outstanding at July 31, 2014	3.6		$	33.82	4.4	$	70.7
Options vested and exercisable at July 31, 2014	3.3		$	33.26	4.2	$	65.6
Options vested as of July 31, 2014 and expected to vest thereafter (2)	3.6		$	33.82	4.4	$	70.7
Options available for grant at July 31, 2014	19.8

 _______________

(1) Autodesk did not grant stock options in the six months ended July 31, 2014.

(2) Options expected to vest reflect an estimated forfeiture rate.

(3) Represents the total pre-tax intrinsic value, based on Autodesk’s closing stock price of $53.35 per share as of July 31, 2014, which would have been received by the option holders had all option holders exercised their options as of that date.

Intrinsic Value of Options Exercised and Weighted Average Grant Date Fair Value of Stock Options Granted

The following table summarizes information about the pre-tax intrinsic value of options exercised and the weighted average grant date fair value per share of options granted during the three and six months ended July 31, 2014 and 2013:

	Three Months Ended				Six Months Ended
	July 31, 2014		July 31, 2013		July 31, 2014		July 31, 2013
Pre-tax intrinsic value of options exercised (1)	$	21.4	$	10.0	$	44.2	$	42.8
Weighted average grant date fair value per share of stock options granted (2)	$	—	$	—	$	—	$	—

 _______________

(1) The intrinsic value of options exercised is calculated as the difference between the exercise price of the option and the market value of the stock on the date of exercise.

(2) The weighted average grant date fair value per share of stock options granted is calculated, as of the stock option grant date, using the Black-Scholes Merton (BSM) option pricing model. For the three and six months ended July 31, 2014 and 2013, Autodesk did not grant stock options.

Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range

The following table summarizes information about options outstanding and exercisable at July 31, 2014:

	Options Vested and Exercisable						Options Outstanding
	Number of Shares (in millions)	Weighted average contractual life (in years)	Weighted average exercise price		Aggregate intrinsic value (1) (in millions)		Number of Shares (in millions)	Weighted average contractual life (in years)	Weighted average exercise price		Aggregate intrinsic value (1) (in millions)
Range of per-share exercise prices:
$2.28 - $29.40	1.2		$	23.36			1.3		$	23.60
$29.50 - $41.62	1.7		38.24				1.8		38.27
$42.39 - $43.81	0.4		43.80				0.5		43.79
	3.3	4.2	$	33.26	$	65.6	3.6	4.4	$	33.82	$	70.7

 _______________

(1) Represents the total pre-tax intrinsic value, based on Autodesk’s closing stock price of $53.35 per share as of July 31, 2014, which would have been received by the option holders had all option holders exercised their options as of that date.

Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity

A summary of restricted stock unit activity for the six months ended July 31, 2014 is as follows:

	Unvested Restricted Stock Units		Weighted average grant date fair value per share
	(in thousands)
Unvested restricted stock units at January 31, 2014	6,515.6		$	39.15
Granted	1,257.3		59.98
Vested	(1,369.8	)	36.34
Canceled/Forfeited	(259.7	)	40.98
Performance Adjustment (1)	(74.7	)	36.52
Unvested restricted stock units at July 31, 2014	6,068.7		$	43.92

 _______________

(1) Based on Autodesk's financial results for both the fiscal 2013 and 2014 performance period. The performance stock units were earned at 92.3% and 65.8% of the target award for granted in fiscal 2013 and fiscal 2014, respectively.

Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs

The following table summarizes stock-based compensation expense for the three and six months ended July 31, 2014 and 2013, respectively, as follows:

	Three Months Ended July 31, 2014			Three Months Ended July 31, 2013
Cost of license and other revenue	$	1.1		$	0.9
Cost of subscription	1.0			0.5
Marketing and sales	17.6			14.0
Research and development	13.7			10.2
General and administrative	6.4			5.5
Stock-based compensation expense related to stock awards and ESP Plan purchases	39.8			31.1
Tax benefit	(10.4		)	(8.1		)
Stock-based compensation expense related to stock awards and ESP Plan purchases, net of tax	$	29.4		$	23.0
	Six Months Ended July 31, 2014			Six Months Ended July 31, 2013
Cost of license and other revenue	$	2.0		$	1.8
Cost of subscription	1.8			1.1
Marketing and sales	31.6			28.1
Research and development	24.6			21.1
General and administrative	13.4			12.5
Stock-based compensation expense related to stock awards and ESP Plan purchases	73.4			64.6
Tax benefit	(19.6		)	(17.4		)
Stock-based compensation expense related to stock awards and ESP Plan purchases, net of tax	$	53.8		$	47.2

Disclosure of Share-based Compensation Arrangements by Share-based Payment Award

Autodesk uses the following assumptions to estimate the fair value of stock-based awards:

	Six Months Ended July 31, 2014		Six Months Ended July 31, 2013
	Performance Stock Unit (1)	ESP Plan (2)	Performance Stock Unit (1)	ESP Plan (2)
Range of expected volatilities	30%	30 - 33%	34%	27 - 36%
Range of expected lives (in years)	N/A	0.5 - 2.0	N/A	0.5 - 2.0
Expected dividends	—%	—%	—%	—%
Range of risk-free interest rates	0.1%	0.1 - 0.4%	0.1%	0.1 - 0.3%

 _______________

(1) Autodesk did not grant PSUs in the three months ended July 31, 2014 and 2013 that were subject to market conditions.

(2) Autodesk did not grant shares under the ESP Plan in the three months ended July 31, 2014 and 2013.